[Foreign Investment Trends] 1.4 Trillion Won Buy Korea... 5 Consecutive Weeks of Net Buying Rally

"Attractiveness of Korean Stock Valuation"
Strategy Targeting Stocks with Strong Q3 Earnings and Net Foreign Buying

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Foreign investors have further expanded their investments in domestic stocks this month.

According to the Korea Exchange on the 6th, foreign investors net purchased domestic stocks worth approximately 1.4745 trillion KRW from the 31st of last month to the 4th of this month. They bought about 1.4704 trillion KRW in the KOSPI market and 10.2 billion KRW in the KOSDAQ market.

This represents an increase in buying momentum following a net purchase of about 1.1 trillion KRW in the last week of the previous month. Foreign investors have maintained a net buying streak for five consecutive weeks, recording a net buying surplus of 2.4 trillion KRW last month.

Last week, the stock most purchased by foreign investors was Samsung Electronics (448.1 billion KRW), followed by LG Energy Solution (257.7 billion KRW) and Samsung SDI (231.1 billion KRW). Hanwha Solutions and LG Chem also made the list of top foreign net purchases, with approximately 60.5 billion KRW and 58.3 billion KRW respectively.

On the other hand, Kakao (-62.7 billion KRW) was the most sold stock. This was followed by POSCO Holdings (-60.4 billion KRW), Doosan Enerbility (-56.0 billion KRW), Korea Zinc (-55.4 billion KRW), and Hotel Shilla (-44.6 billion KRW).

Jung Da-woon, a researcher at Ebest Investment & Securities, said, "The recent strength in Korea is interpreted as being due to foreign inflows caused by extreme undervaluation," adding, "Since the leading indicators of supply and demand are still deteriorating, it is necessary to continuously monitor short-term indicators such as fund flows, but with solid earnings in the third quarter of this year, attention should be paid to stocks with recent one-week foreign net purchases that have value merit, such as OCI, Hanwha, Hyundai Electric, and stocks with recent one-week foreign net purchases (Simtek, Haesung DS, DL, Daewoo Construction, Seoul Semiconductor, etc.) should be noted."